Nigeria’s forex reserves fall below $36bn despite oil rally
Nigeria’s foreign exchange reserves have declined below $36 billion to the lowest level since Jan. 8, 2021 despite the recent increase in global oil prices.
The reserves fell to $35.89 billion on Feb. 9 from $36.19 billion at the start of the month, according to the latest data obtained by Markets Reporters from the Central Bank of Nigeria.
The reserves had risen by over $1 billion to $36.39 billion on January 27 from $35.37 billion on Dec. 31, 2020. The forex reserves peaked at $36.52 billion on Jan. 25 but started declining the next day.
Last month, the Monetary Policy Committee of the CBN noted the increase in the level of external reserves, which stood at $36.23 billion as at Jan. 21, 2021, compared with $34.94 billion at the end of November 2020.
“This reflected improvements in crude oil prices, partial global economic recovery amid optimism over the discovery and distributions of COVID-19 vaccines by most developed economies,” it said in a communique at the end of its two-day meeting.
The global oil benchmark, Brent crude, has risen further this month, hitting the $60 per barrel mark on Monday for the first time in more than a year.
